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Claire Perry to be questioned on carbon pricing after Brexit

On Wednesday 27th February the House of Lords EU Energy and Environment Sub-Committee will question Claire Perry, Minister of State for Energy and Clean Growth, Department for Business, Energy and Industrial Strategy and Robert Jenrick MP, Exchequer Secretary to the Treasury, on the Government's approach to carbon pricing after Brexit.

The Committee is considering the Government's proposed carbon pricing approach in a ‘deal' scenario, which is to create a domestic emissions trading system and link it to the EU ETS, and its approach in a 'no deal' situation, which is to implement a Carbon Emissions Tax.

In evidence heard from the industry and climate experts earlier this month, there were concerns that the Government is running out of time to agree the terms of either of these two scenarios, and the Department was heavily criticised for the timing and approach of its consultation  on options for carbon pricing after Brexit.

The Minister will have the opportunity to respond to this criticism, and the Committee will ask for clarity on how the Carbon Tax level would be set and whether a domestic emissions trading scheme could be set up in time.

The Committee will begin taking evidence at 11:00am in Committee Room 2 of the House of Lords. Other issues the Committee are likely to address include:

  • Whether the Government intends to maintain the obligation under EU rules to spend at least 50% of carbon pricing revenue on climate and energy
  • Whether a UK-only ETS would be effective, cost-efficient and create a stable carbon price
  • The reaction of the devolved administrations to the Government's proposals
  • The calculations and assumptions behind the proposed initial Carbon Emissions Tax level of £16/tonneCO2

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